The global market for steel scrap is expected to reach almost 630 million tonnes by the end of the year, growing to around 750 million tonnes by 2026.
Market momentum could have been higher if it hadn’t been for the pandemic, new data by Global Industry Analysts suggests. Figures have been slightly revised from a 4.5% compound annual growth rate to around 3.5% during the forecast period. ‘As global reserves shrivel and the cost of extracting ore rises, scrap is expected to account for a major portion of metal production in the future,’ the analysts write.
The US market represents roughly 55 million tonnes of this year’s steel scrap sector. It currently has a 8.78% share in the global market and is projected to see 3.2% CAGR across the forecast period.
China, the world’s second largest economy, is forecast to reach an estimated market size of 301.7 million tonnes in the year 2026, a CAGR of 5.7%. CAGR in other important regions such as Japan and Canada are put at 2.7% and 3.2% respectively.
Within Europe, Germany is predicted to witness the biggest annual growth at approximately 2.6%. Analysts report that the rest of Europe will hit 320 million tonnes by 2026.
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